California Resources Corporation Announces Consideration for Tender Offer for Certain of its 7.125% Senior Notes due 2026
California Resources (NYSE: CRC) announced the consideration for its cash tender offer to purchase up to $300 million of its outstanding 7.125% senior notes due 2026. The Early Tender Consideration is $1,009.15 per $1,000 principal amount for notes validly tendered by the Early Tender Time of August 21, 2024. The offer was oversubscribed, with $488,467,000 tendered, resulting in a proration rate of approximately 61.4%. CRC anticipates the Early Settlement Date will be August 23, 2024. The company does not expect to accept any notes tendered after the Early Tender Time. This tender offer is part of CRC's debt management strategy as an independent energy and carbon management company committed to energy transition.
California Resources (NYSE: CRC) ha annunciato la possibilità di un'offerta pubblica di acquisto per un massimo di 300 milioni di dollari dei suoi obbligazionari senior con un tasso del 7,125% in scadenza nel 2026. L'importo di considerazione anticipata è di 1.009,15 dollari per 1.000 dollari di valore nominale per le obbligazioni valide presentate entro la scadenza anticipata del 21 agosto 2024. L'offerta è stata sovrascritta, con 488.467.000 dollari presentati, risultando in un tasso di ripartizione di circa 61,4%. CRC prevede che la data di regolamento anticipato sarà il 23 agosto 2024. L'azienda non prevede di accettare obbligazioni presentate dopo la scadenza anticipata. Questa offerta di acquisto fa parte della strategia di gestione del debito di CRC come azienda indipendente nel settore dell'energia e della gestione del carbonio, impegnata nella transizione energetica.
California Resources (NYSE: CRC) anunció la consideración por su oferta pública de compra en efectivo para adquirir hasta 300 millones de dólares de sus notas senior del 7.125% con vencimiento en 2026. La consideración por la entrega anticipada es de 1,009.15 dólares por cada 1,000 dólares de valor nominal de las notas válidamente entregadas antes del plazo de entrega anticipada del 21 de agosto de 2024. La oferta fue sobreeñada, con 488,467,000 dólares presentados, resultando en una tasa de prorrateo de aproximadamente 61.4%. CRC anticipa que la fecha de liquidación anticipada será el 23 de agosto de 2024. La compañía no espera aceptar notas entregadas después del plazo de entrega anticipada. Esta oferta de compra es parte de la estrategia de gestión de deuda de CRC como una empresa independiente de energía y gestión de carbono comprometida con la transición energética.
캘리포니아 자원(California Resources) (NYSE: CRC)는 2026년 만기인 7.125% 고급채권의 최대 3억 달러를 구매하기 위한 현금 입찰 제안을 고려한다고 발표했습니다. 조기 입찰 고려액은 1,009.15 달러로, 2024년 8월 21일의 조기 입찰 기한까지 유효하게 제출된 채권의 1,000 달러 원금에 대한 금액입니다. 이 제안은 초과 청약 되었으며, 총 488,467,000 달러가 제출되어 약 61.4%의 비율로 할당되었습니다. CRC는 조기 결제일이 2024년 8월 23일이 될 것으로 예상하고 있습니다. 회사는 조기 입찰 기한 이후에 제출된 채권을 수락할 것으로 보지 않고 있습니다. 이 입찰 제안은 에너지 전환에 대한 헌신을 가진 독립 에너지 및 탄소 관리 회사로서의 CRC의 부채 관리 전략의 일환입니다.
California Resources (NYSE: CRC) a annoncé la prise en considération de son offre publique d'achat en espèces pour acquérir jusqu'à 300 millions de dollars de ses obligations senior à 7,125% échéant en 2026. La prime de souscription anticipée est de 1.009,15 dollars pour 1.000 dollars de montant nominal pour les obligations valablement souscrites avant le délai de souscription anticipée du 21 août 2024. L'offre a été sursouscrite, avec 488.467.000 dollars souscrits, résultant en un taux de prorata d'environ 61,4%. CRC prévoit que la date de règlement anticipé sera le 23 août 2024. La société ne s'attend pas à accepter des obligations souscrites après la date limite de souscription anticipée. Cette offre d'achat fait partie de la stratégie de gestion de la dette de CRC en tant qu'entreprise indépendante de gestion de l'énergie et du carbone, engagée dans la transition énergétique.
California Resources (NYSE: CRC) hat die Berücksichtigung eines Barangebot zur Rückkauf von bis zu 300 Millionen Dollar ihrer ausstehenden 7.125% Senior Notes mit Fälligkeit 2026 angekündigt. Die Vorzeitige Tenderprämie beträgt 1.009,15 Dollar pro 1.000 Dollar Nennbetrag für rechtzeitig bis zur Vorzeitigen Tenderfrist am 21. August 2024 eingereichte Anleihen. Das Angebot wurde überzeichnet, mit 488.467.000 Dollar eingereicht, was zu einem Pro-rata-Satz von etwa 61,4% führt. CRC erwartet, dass das frühzeitige Abrechnungsdatum der 23. August 2024 sein wird. Das Unternehmen geht nicht davon aus, Anleihen zu akzeptieren, die nach der Vorzeitigen Tenderfrist eingereicht werden. Dieses Rückkaufangebot ist Teil der Schuldenmanagementstrategie von CRC als unabhängige Energie- und Kohlenstoffmanagementfirma, die sich dem Energiemix verpflichtet hat.
- Successful oversubscription of the tender offer, indicating strong investor interest
- Potential reduction of $300 million in outstanding debt, improving the company's balance sheet
- Early settlement date of August 23, 2024, allowing for quick execution of the debt reduction strategy
- Proration of accepted notes at 61.4% due to oversubscription, potentially disappointing some investors
- Premium payment of $9.15 per $1,000 principal amount, representing an additional cost for the company
Insights
California Resources 's tender offer for up to
The high participation rate, with
Overall, this tender offer could improve CRC's balance sheet by reducing its debt load, potentially lowering interest expenses. However, the premium paid and use of cash for this transaction should be weighed against other potential uses of capital in the energy transition sector.
CRC's tender offer reflects broader trends in the energy sector, where companies are increasingly focusing on financial flexibility and sustainability. As an "independent energy and carbon management company committed to energy transition," CRC's debt management strategy aligns with its pivot towards decarbonization projects.
The company's emphasis on carbon capture and storage (CCS) and emissions reduction projects positions it well in California's stringent regulatory environment. By potentially freeing up future cash flows through debt reduction, CRC could have more resources to invest in these green initiatives.
However, investors should note the delicate balance CRC must strike. While debt reduction is positive, the energy transition requires significant capital investment. The success of this strategy will depend on CRC's ability to efficiently allocate capital between debt management and growth in low-carbon technologies, all while navigating the volatile energy market.
The consideration of
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Only holders of 2026 Notes who validly tendered their 2026 Notes at or prior to 5:00 p.m.,
Since the principal amount of 2026 Notes tendered as of the Early Tender Time exceeds the Maximum Tender Amount, the 2026 Notes validly tendered at or prior to the Early Tender Time will be subject to proration as described in the section “The Terms of the Tender Offer—Maximum Tender Amount; Priority of Acceptance; Proration” of the Offer to Purchase using a proration rate of approximately
The Company reserves the right, in its sole discretion, to pay for 2026 Notes that are validly tendered at or prior to the Early Tender Time, and that are accepted for purchase, on a date following the Early Tender Time and prior to the Expiration Time (the “Early Settlement Date”). The Company anticipates that the Early Settlement Date will be August 23, 2024, the second business day after the Early Tender Time, subject to all conditions to the Tender Offer having been satisfied or waived by the Company.
Dealer Managers and Depositary and Information Agent
The Company has appointed Jefferies LLC, Citigroup Global Markets Inc. and TD Securities (
This press release shall not constitute, or form part of, an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The Tender Offer is being made only pursuant to the Offer to Purchase and only in such jurisdictions as is permitted under applicable law.
From time to time after completion of the Tender Offer, the Company or its affiliates may purchase additional 2026 Notes in the open market, in privately negotiated transactions, through tender or exchange offers or otherwise, or the Company may redeem 2026 Notes pursuant to their terms. Any future purchases may be on the same terms or on terms that are more or less favorable to holders of the 2026 Notes than the terms of the Tender Offer.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any 2026 Notes in the Tender Offer and does not constitute a notice of redemption for the 2026 Notes.
About California Resources Corporation
California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage and other emissions-reducing projects.
Cautionary Note Regarding Forward-Looking Statements
All statements, except for statements of historical fact, made in this release regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as statements regarding the Tender Offer, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements speak only as of the date of this release. Although the Company believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, the Company expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.
The Company cautions you that these forward-looking statements are subject to all of the risks and uncertainties incident to the Company’s business, most of which are difficult to predict and many of which are beyond the Company’s control. These risks include, but are not limited to, the risks described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and its subsequently filed Quarterly Reports on Form 10-Q.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240822834409/en/
Joanna Park (Investor Relations)
(818) 661-3731
Joanna.Park@crc.com
Richard Venn (Media)
(818) 661-6014
Richard.Venn@crc.com
Source: California Resources Corporation
FAQ
What is the Early Tender Consideration for CRC's 7.125% Senior Notes due 2026?
How much of the 7.125% Senior Notes due 2026 did CRC offer to purchase in the tender offer?
What was the total amount of CRC's 7.125% Senior Notes due 2026 tendered in the offer?
When is the expected Early Settlement Date for CRC's tender offer?
